2018 investor day...data centers •increased data loads and server speeds creating unique...
TRANSCRIPT
Ashish Khandpur, Ph.D.
Executive Vice President
November 15, 2018
2018 Investor Day Electronics & Energy Business Group
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Agenda: Electronics & Energy Business Group
2018 Investor Day | Nov 15, 2018
Overview
Journey so far and path forward
Platforms for growth
Summary
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2018e sales
$5.5B*
• Our customers are global leaders in the dynamic technology, automotive and energy industries
• We leverage 30 of the 46 3M core technologies to enable our customers’ next generation products
Electronics & EnergyAdvancing a connected world
Energy
$1.5BElectronics
$4.0B
*Includes partial year sales of divested communication markets buisness
Enhancing visual experiences
Enabling high-speed data processing
Improving reliability and efficiency of energy delivery
Advancing distributedpower network
Advancing the future of mobility
Advancing design and function
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Our journey
From 9 divisions to 3 ~900bps margin expansion
2018
Financial attractiveness
Str
ate
gic
att
rac
tiv
en
ess
2013
Financial attractiveness
Str
ate
gic
att
rac
tiv
en
ess
~18%
~27%
2013* 2018e
• Conducted extensive portfolio management, project prioritization, and footprint actions
• Created scale to drive efficiencies and took strategic cost actions
• Built an agile team and positioned for sustainable and profitable growth
* 2013 amount is on a different presentation basis than that of 2018; see 2018 Investor Day Appendix presentation for additional information.
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Our approach to growth
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This is what we do…
Televisions
OLED andfoldable displaysPhones
Wearables
Origins Established Emerging
Display solutions
LCD displays
Virtual realityoptics
Automotivedisplays
Head-updisplays
eMirrors
Augmentedreality
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Electronic and display materials
Segment opportunity
$25B
• Continued demand for enhanced display performance and functionalities
• 3M creating differentiated solutions for LCD displays and bringing game-changing innovation to OLED displays
• Expanding in new applications beyond displays
Display enhancement films (OLED & LCD), optically-clear adhesives, and electronics assembly solutions
Wireless power charging, EMI shielding, advanced finishing and enclosure materials for current and 5G networks
Growing 1% to 5%
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Segment opportunity
$10B
Utilities and modern grids
• Grid reliability and renewable energy adoption are driving modernization of power infrastructure
• Needs for underground asset management, real-time grid monitoring, load balancing, and fault location
• 3M innovating in easy-to-install cable connectors and sensored cable accessories for real-time asset monitoring and fault detection
Robust, easy-to-install 3M connectors
3M sensored cable accessories
3M products for underground asset monitoringGrowing 2% to 5%
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Segment opportunity
$8B
Auto electrification: focus on quality, safety and range
AutoDisplays(Human Machine Interface)
1Battery solutions
2Light-weighting and assembly solutions
3
Growing 8% to 10%
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• Demand for more information, connectivity and ‘consumer electronics like’ experiences
• Opportunity for rich and interactive displays that enhance visibility and safety
• 3M’s light-management expertise enabling glare free, evenly lit center stack displays, camera displays for rear- and side-view mirrors, and head-up displays that can span entire windshields
Center stack display, and camera displays replacing rear- and side-view mirrors
Auto electrification: capitalize on display growth
Head-up displays for smart signs and road furniture
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• Need to address EV design challenges around battery safety, efficiency, and assembly to maximize range
• 3M thermal management pads and fluids, insulation tapes, cushioning materials improve safety, life and performance of battery packs
• 3M adhesives and tapes provide bonding solutions in battery packs
Auto electrification: battery solutions
Novec™ sustainable performance fluids
Immersion cooling for EV batteries
3M battery bonding and assembly solutions
3M thermal interface and conductive materials
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• Artificial Intelligence, automation, cloud, and 5G driving semiconductor growth and wafer starts
• 3M Chemical-Mechanical Planarization solutions (pads and pad conditioners) improve wafer polishing and yield
• 3M high performance fluids are used in semiconductor in-process cleaning and preparation steps and to enable efficient heat transfer in chiller applications
Segment opportunity
$6B
Semiconductor
3M pads and pad conditioners 3M carrier and transport tapes3M high performance fluidsGrowing 5% to 8%
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Segment opportunity
$2B3M TwinAx™ interconnects for fast data transfers
Server immersion cooling with 3M performance fluids
Data centers• Increased data loads and server speeds creating unique challenges
for data centers
• Need for efficient cooling of servers, low latency, and reliable supply of power in data centers
• 3M high performance fluids for thermal management, interconnect solutions for high speed data transfer, and cable accessories to ensure reliable power supply
3M power cable accessoriesGrowing 15% to 25%
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Renewable energy
• Renewable energy continues to become a greater portion of the overall global energy mix
• 3M light redirecting films, tapes and materials enable high efficiency solar panels; 3M ultra-barrier film for flexible solar
• 3M wind protection tapes help improve turbine uptime; 3M cable accessories enable reliable power generation
Segment opportunity
$2B3M power cable accessories3M wind protection tapes protect
and improve performance3M light redirecting film improves solar cell efficiencyGrowing 5% to 10%
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Summary
Organic local-currency growth
2019 – 2023
2% to 6%• Expanding and extending our transformation journey
• Working closely with our customers, strengthening the core and accelerating expansion infast-growing segments
• Innovating for profitable and consistent growth by winning specs in long-cycle segments like automotive, semiconductor and data centers
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